Decision No. 15/2019/TT-BTC dated March 18, 2019 of the Ministry of Finance on providing instructions for financial management and operation assessment of credit guarantee funds for small and medium-sized enterprises

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Decision No. 15/2019/TT-BTC dated March 18, 2019 of the Ministry of Finance on providing instructions for financial management and operation assessment of credit guarantee funds for small and medium-sized enterprises
Issuing body: Ministry of FinanceEffective date:
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Official number:15/2019/TT-BTCSigner:Huynh Quang Hai
Type:CircularExpiry date:Updating
Issuing date:18/03/2019Effect status:
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Fields:Enterprise , Finance - Banking

SUMMARY

06 expenses excluded from operation expense of Credit guarantee funds

Decision No. 15/2019/TT-BTC on providing instructions for financial management and operation assessment of credit guarantee funds for small and medium-sized enterprises is issued by the  Ministry of Finance on March 18, 2019.

Accordingly, there are 06 expenses shall not be included in the operating expenses of the credit guarantee funds. These are:

- Damages already supported by the State or compensated by insurance agencies or damage-causing parties.

- Payment of fines due to administrative violations, including: Violating traffic laws, violating the law on accounting and statistics and other administrative violations according to provisions under law.

-  Expenses without invoices or invalid and legal vouchers.

- Expenses covered by other funding sources.

-  Supporting expenditures for local areas, social organizations, and other agencies.

- Expenses in excess of the norms prescribed in this Circular and other relevant legal documents.

In addition, this Circular also regulates on Operating capital, Management and use of capital, Handling losses of assets, Income, Expenses…of the credit guarantee funds.

This Circular takes effect from June 1, 2019.

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Effect status: Known

MINISTRY OF FINANCE

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No:15/2019/TT-BTC

SOCIALIST REPUBLIC OF VIETNAM

Independence – Freedom - Happiness

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Ha Noi, March 18, 2019

 

DECISION

PROVIDING INSTRUCTIONS FOR FINANCIAL MANAGEMENT ANDOPERATION ASSESSMENT OFCREDIT GUARANTEE FUNDS FOR SMALL AND MEDIUM-SIZED ENTERPRISES

 

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and Amendments of Law on Credit Institutions dated November 20, 2017;

Pursuant to the Law on Enterprises dated November 26, 2014;

Pursuant to the Law on Support for Small and Medium-Sized Enterprises dated June 12, 2017;

Pursuant to Decree No. 87/2017/ND-CP dated July 26, 2017 of the Government regulating functions, obligations, authorization and organizational structure of the Ministry of Finance;

Purusant to Decree No.34/2018/ND-CPdated March 08, 2018 of the Government on establishment, organization and operation of credit guarantee funds for medium and small enterprises;

In accordance with Head of Department of Banking and Institution Finance;

Minister of the Ministry of Finance issues the Circular providing guidance instructions for financial management and operation assessment of credit guarantee funds for small and medium-sized enterprises.

 

ChapterI

GENERAL PROVISIONS

Article1.Scope and regulated entities

1.Scope:

This Circular regulates:

a) The financial management regime for credit guarantee funds for local small and medium-sized enterprises (hereinafter referred to as “Credit Guarantee Funds” or “Funds”) is established, organized and operated according to regulations under Decree No. 34/2018/ND-CP of March 8, 2018 of the Government (hereinafter referred to as the Decree No. 34/2018/ND-CP of the Government);

b) Evaluate the performance of credit guarantee funds.

2. Subjects of application:

a) Credit guarantee fund;

b) Organizations providing loans according to the provisions of Clause 5, Article 3 of the Decree No. 34/2018/ND-CP of the Government;

c) Small and medium-sized enterprises are granted credit guarantee in accordance with provisions of Decree No. 34/2018/ND-CP of the Government;

d) Other relevant organizations and individuals.

Article 2. Principles of financial management

Credit guarantee funds are financially autonomous, self-responsible for their operations according to provisions under law; preserve and develop capital, offset costs and risks in operation; operate on the principles of publicity, transparency, savings and efficiency in accordance with the Decree No. 34/2018/ND-CP of the Government, stipulated in this Circular and relevant provisions of law.

ChapterII

MANAGEMENT OF CAPITAL AND ASSETS OF CREDIT GUARANTEE FUNDS

Article 3. Operating capital of credit guarantee funds

The operational capital of the credit guarantee fund shall comply with the provisions of Article 40 of Decree No. 34/2018/ND-CP of the Government.

Article 4. Management and use of credit guarantee funds

Credit guarantee fundsmanage and use capital in accordance with Article 41 of Decree No. 34/2018/ND-CP.

Article 5. Ensuring safety of capital and assets

Credit guarantee funds have to fully comply with the regulations on ensuring the safety of the Fundscapital and properties, including:

1. Managing and using capital and assets for the right purposes and in accordance with the Decree No. 34/2018/ND-CPof the Government, this Circular and relevant provisionsunderlaw.

2. Purchase property insurance,operatingrisk insurance for credit guarantee activities and other insurance in accordance with law.

3. Appropriation of risk provisions:

a)Fully appropriatingprovisions for guarantee risks into operation expenses of the Fundsin accordance with Article 36 of Decree No. 34/2018/ND-CP of the Government, this Circular and relevant provisionsunder law;

b)Appropriatingand using other risk provisions in accordance with regulations applicable to enterprises.

4. Handling losses of assets according toregulations underClause 2 of this Article, Point b, Clause 3, Article 43 of the Government s Decree No. 34/2018/ND-CP and Article 8 of this Circular.

5.Fullycomplyingwith the provisions on subjects, conditions, scope of guarantee, limitation of guarantee provision and contents related to the Fundscredit guarantee activities according to the provisions of Decree No. 34/2018/ND-CP of the Government.

6. Not usingoperating capital to implement monetarytradingbusiness, securities investment, capital contribution, share purchase of enterprises, real estate business andother investmentbusiness activitieswhich are not allowed(except for the Fundsidle money used according to the provisions of Clause 3, Article 41 of Decree No. 34/2018/ND-CP of the Government).

7. Notraisingcapital in the form of receiving deposits from organizations and individuals; issuing bills, bonds, bills.

8. Implementingother measures to ensure capital safety in accordance with the law.

Article 6. Classification of debts,aggregation of provisions for guarantee risk and handling risk

1. The classification of debts, aggregation of provisions for guarantee risk and risk handling of credit guarantee funds shall comply with the provisions of Articles 36 and 37 of Decree No. 34/2018/ND-CP of the Government and the provisions under relevant laws.

2. Time of risk provisions: The credit guarantee fund shall aggregate the provisions for guarantee risk on December 31 every year.

Article 7. Asset management

1. Credit guarantee fund shall formulate a Regulation on management of construction investment, procurement and fixed asset management activities and submit it to the Fund s President for approval according to the provisions of Decree No. 34/2018/ND-CP of the Government, the Charter of organization and operation of thecreditguaranteefund and relevant legal provisions.

2. Investment, construction and procurement of fixed assets of credit guarantee funds:

a) Competence to decide on investment, construction and procurement of fixed assets of credit guarantee funds shall comply with the provisions of the Decree No. 34/2018/ND-CPof the Government,the Charter of organization and operation,regulation on management of construction investment, procurement and management of fixed assets of credit guarantee funds and relevant laws;

b) The order and procedures for investment in construction, procurement and repair of fixed assets of credit guarantee funds shall comply with the regulations of the State-owned one-member limited liability companiesandregulations on management ofinvestment onconstruction, procurement and management of fixed assets of credit guarantee funds;

c) The investment and procurement of means of transportfor purposeof the operation of thecreditguaranteefundsshall comply with the provisions as for the State-owned one-member limited liability companiesandregulationson management of construction investment, procurement and management of fixed assets of credit guarantee funds;

d) Credit guarantee funds shall invest in construction and procurement of fixed assetsfor purpose of theFundsactivities within the capitalresources of the Fundsspecified at Point b, Clause 1, Article 41 of the Decree No. 34/2018./ND-CP of the Government.

3. Principles for depreciation, management andutilizationand duration of depreciation of fixed assets: Credit guarantee funds shall comply with regulations on fixed asset depreciation applicable toState-ownedone-member limited liabilitycompaniesand theregulationson management of construction investment, procurement and management of fixed assets of credit guarantee funds.

4. Leasingoffixed assets:

a) Credit guarantee funds are entitled to lease fixed assets on the principle of efficiency, preservation and development of capital according to the provisionsunderlaw for state-owned one-member limited liability companies;

b) The competent authoritywhichapprovesinvestment, construction and fixed asset procurement projects of thecreditguaranteefund is theauthority levelthat decides the lease, mortgage and pledge of fixed assets.

5. Liquidation and sale of fixed assets:

a) Credit guarantee funds are entitled tobe activein selling and liquidating damaged or obsolete fixed assets,assets that theyhaveno need to use or fail to use;

b) The competent authoritywhichapprovesinvestment, construction and fixed asset procurement projects of thecreditguaranteefund is theauthority levelthat decides theliquidation and saleof fixed assets;

c) The method, order and procedures for liquidation and sale of fixed assets of the credit guarantee fundsshall comply with the provisions of law applicable to the State-owned one-member limited liability companiesand theregulationson management of construction investment, procurement and management of fixed assets of thecreditguaranteefunds.

6.Stock-takingof assets and re-evaluation offixed assets:

a) Credit guarantee funds must organize regular or irregularstock-takingto determine the number of fixed assets in the following cases: When closing accounting books to make annual financial statements; after the occurrence of natural disasters, epidemics or for some reason causing fluctuation of assets of the credit guarantee funds; according to regulations of competent state agencies;

b) For surplus or deficient assets, the causes and responsibilities of concerned organizations and individuals must be clearly determined and thelevels ofmaterial compensationshall be determined according to the provisions of Decree No. 34/2018/ND-CP. of the Government and Article 8 of this Circular;

c) Credit guarantee funds shall re-evaluate fixed assets under decisions of competentstate agencies or other cases prescribed by law;

d) The revaluation of fixed assets and settlement ofupward or downwarddifferences in value due to the re-evaluation of assets of the credit guarantee fundsshall comply with regulations applicable to theState-owned one-memberliability company.

Article 8. Handling losses of assets of credit guarantee funds

When suffering from property losses, thecreditguaranteefundsmust set up acouncil to determine the extent of loss, cause and responsibility and handle the following:

1. Clearly identify objective causes, force majeure (natural disasters, epidemics, fires, unexpected accidents, political risks) and subjective causes.

2. If due to subjective causes, individuals and collectives causing losses must compensate for damage according toprovisionsunder law. Credit guarantee funds shall specify the compensation and decision on compensation levels in accordance with provisionsunder lawand take responsibility for their decisions.

3. If the property has beeninsured, the insurance shall be handled in accordance with the insurance law.

4. Use theprovisionamountsappropriatedin expensesfor compensationaccording to the provisions of the Government s Decree No. 34/2018/ND-CP, this Circular and relevant laws.

5. Loss valueiscompensated by indemnities of individuals, collectives and insurance organizations andprovisions appropriated in expenses, in case of any shortfall, such amountshall be accounted into the Fundsexpenses during the period.

 

ChapterIII

MANAGEMENT OF INCOMEANDEXPENSESAND DISTRIBUTION OF FINANCIAL RESULTS

Article 9. Income of Credit Guarantee Funds

Income of credit guarantee fund is receivables arising in the period, determined in accordance with Vietnamese accounting standards and relevant laws, having valid invoices or vouchers and must be fullyrecorded intorevenue, including:

1. Revenues from credit guarantee operations:

a) Collecting fees for appraisal of dossiers of application for credit guarantee;

b) Collection of credit guarantee fees;

c) Collecting debt arrears fromcustomers.

2. Revenues from financial activities;

a) Deposit interests;

b) Interests from investment in Government bonds, treasury bills, treasury bonds, bonds for national construction, Government-underwritten bonds;

c) Revenues from the management of aidresources, support, funding and contributions (if any);

d) Collecting entrustment fees from local governments, local financial funds, domestic and foreign organizations and individuals (entrusting parties) to fulfill therequirementsof the mandate in accordance with the provisionsunder law.

3. Other income:

a) Revenues from liquidation and sale of properties;

b) Receiving compensated insurance money (the rest after compensating for the losses);

c) Collecting fines for breaches of economic contracts;

d) Revenues from service activities, fromleasing of assets of thecredit guarantee funds;

d)Incomeexchange rate differences (if any);

e) Other lawful revenues as prescribed by law.

4. Credit guarantee funds shallappropriately, fully and promptlycollectincomeaccording toprovisions under law.

Article 10. Expenses of credit guarantee funds

Expenses of the credit guarantee fundsare expenses incurred in the periodwhich arenecessary for the operation of the credit guarantee funds, complying with the principle of compatibility between income and expenses, having adequate invoices, valid documents as prescribed by law, including:

1.Operating expensesof credit guaranteeactivities:

a) Payment of loan interests and other capitalraisingexpenses according to provisionsunder law;

b)Provisions for guarantee riskaccording to Article 6 of this Circular;

c) Expenses for professional risk insurance for guarantee activities and other types of insurance as stipulated in Decree No. 34/2018/ND-CP of the Government and provisions of relevant laws;

d) Expenses for exchange rate differences (if any);

dd) Payment of taxes,charges and fees for therelevantactivities according to currentprovisions underlaw;

e) Other expenses for professional operations: Expenses for recovering debtswritten off, recovering bad debts and paying debt recovery service charges to organizations permitted to perform debt recovery services according to the provisionsunderlaw; expenses for debt trading activities; expenses for seizing, preserving and exploitingcollateralassets in the course of handling bad debts according to actually arising amounts; expenses for handling losses of capital, assets and debt repayments after being offset byresourcesin accordance with regulations; payments forattorneys, legal advice, court fees and judgment execution fees; payment of debtswhich havebeen determinedasnot subject to any creditorand accounted into income, howeverthe creditor isidentified afterwards;amountsrecorded as income but in fact cannot be collected and are not accounted for as income reduction; entrustment expenses, outsourced service expenses for professional activities and other expenses according to provisionsunder law.

2. Expenses for financial activities: Expenses related to deposit activities at commercial banks and other financial operation expenses under this Circular.

3. Expenses for apparatus operation:

Expenditures on employees and management of credit guarantee funds according to the State regime prescribed forState-ownedone-member limited liability companies:

a) Expenses for employees: Salaries, allowances, wages, salary-basedcontributions: Social insurance, health insurance, unemployment insurance, labor accident insurance –occupational diseases,trade union funds as prescribed; expenses for meals, female labor expenses, labor protection expenses,apparelexpenses according to provisionsunder law; medical expenses and leave according to the annual regime; expenses for severance allowances, job-loss allowance for laborers and expenses related to the implementation of payroll streamlining when thecreditguaranteefundsimplement restructuring under the approvedproject; other expenses for employees according to the provisionsunderlaw;

b) Expenses for management and public services: Working expenses for employees and managers of the Fundsfor working in thedomesticallyand abroad; expenses for procurement of office supplies, equipment, stationery, paper, printing ink for documents, books and other materials; post, telephone and communication charges; expenses for renting assets and equipmenton purpose ofthe Fundsoperations; expenses for conferences, seminars, training andcoachingof Fund staff; expenses for propaganda, printing of documents, reception, festivities, transactions, foreign affairs, union delegations, visits; expenses for receiving guests, propagating and advertising according to provisionsunder law; expenses for the inspection, control and audit of Fund activities; support for activities of the Fund s Party and mass organizations; spending on electricity, water, sanitation, environmental protection, health care agencies; other expenses in accordance with the provisionsunderlaw;

c) Expenses for assets: Expenses for fixed asset depreciation according to general regulations for enterprises; purchasing tools and tools; asset leasing; expenses for maintenance,repair and operation of properties; payment of property insurance, sale and disposal of assets, excluding the residual value of liquidated or sold fixed assets (if any).

4.Expensenorms prescribed in Clauses 1, 2 and 3 of this Article shall comply with provisionsunder lawforState-ownedone-member limited liability companies. In cases where the law does not prescribe or control the spending norms,credit guarantee funds, based on their financial capacity, formulate norms and decide on expenditures to ensure suitability, efficiency and responsibility. before the law.

5. The determination of turnover and expenses when calculating thecorporateincome tax of credit guarantee funds shall comply with the provisions of tax law.

Article 11.Expenses which are not included in the operating expenses of the credit guarantee funds

1. Damages already supported by the State or compensated by insurance agencies or damage-causing parties.

2.Payment of finesdue toadministrative violations, including: Violating traffic laws, violating the law on accounting and statistics and other administrative violations according to provisionsunder law.

3. Expenses without invoices or invalid and legal vouchers.

4. Expenses covered by other funding sources.

5.Supportingexpendituresfor local areas, social organizations, and other agencies.

6. Expenses in excess of the norms prescribed in this Circular and other relevant legal documents.

Article 12. Financial results, distribution of financial results

1. Financial results anddistribution offinancial results of thecreditguaranteefundsshall comply with the provisions of Article 43 of Decree No. 34/2018/ND-CP of the Government.

2.Provisions forreward fund and welfare fund:

a) Grade A credit guarantee fundsmaymake provisions of3 months salary forbothreward and welfare funds;

b) Credit guarantee fund ranked B maymake provisions of1.5 months salary forbothreward and welfare funds;

c) Credit guarantee fund rated C maymake provisions of1 month s salary forbothreward and welfare funds.

3.Provision fora reward fund for managers (including the chairman, controller, director, deputy directors and chief accountant of the credit guarantee fund):

a) Credit guarantee fund graded A maymake provisions of1.5 months salary of the manager;

b) Credit guarantee fund ranked Bmake provisions of1 month s salary for managers;

c) Credit guarantee funds rated C shall not set up reward fund of managers.

4. In case of the remaining revenue-expenditure difference aftermaking provisions forinvestment anddevelopment fund and the financial reserve fundisnot enoughmake provisions forreward, welfare and bonus funds for managers according to the prescribedexpenditurelevel,credit guarantee funds are entitled to reduce theprovisionsfor investmentand developmentfund to supplement the sources ofprovisions ofreward, welfare and reward fund for managers, howevermust ensure the minimumprovisionlevel for investmentanddevelopment funds according to regulationsunderArticle 43 of Decree No. 34/2018/ND-CP of the Government.

Article 13. Management and use of funds

The management and use of credit guarantee funds shall comply with the provisions of Article 43 of Decree No. 34/2018/ND-CP of the Government.

 

ChapterIV

ASSESSING OPERATIONAL EFFICIENCY AND RATING CREDIT GUARANTEE TYPE

Article 14. Performance evaluation criteria

1. Indicators for evaluating the annual performance of credit guarantee fundsinclude:

a) Criteria 1: Growth of credit guarantee sales;

b)Criteria2: The rate of debt paid on behalf of the enterprise;

c) Criteria 3: Required debt recovery rate for annual credit guarantee activities;

d)Criteria4: Total income minus total expenses;

dd) Criteria 5:Compliance status in relation tothe law on investment, management and use of capital, properties and obligations with the state budget, the financial reporting regime of the credit guarantee funds.

2. Method of determining the annual performance evaluation criteria of thecreditguaranteefunds:

a) The growth target of credit guarantee sales volume is determined on the guarantee turnover performed in the annual professional operation report approved by the Chairman of the Fund and thebudgeted volume assigned bythe Chairman of the Fundon an annual basis;

b) The ratio of debt paid on behalf of the enterprise, whichis determinedbased onthe actual debt ratio paid on behalf of the enterprise as stipulated in the annual professional operation report approved by the Chairman of the Fund and thebudgeted volume assigned bythe Chairman of the Fundon an annual basis;

c) The compulsory debt recovery ratio, whichis determined by the ratio of the actual principal collected on the totalprincipalreceivable to be due in the year of the debt paid on behalf of the guarantee. This indexis determinedbased onthe rate of implementing regulations in the annual professional operation report approved by the Chairman of the Fund andthe budgeted volume assigned bythe Chairman of the Fundon an annual basis;

d)Total income minustotal expenses, which isdeterminedbased on the actual volumeprescribed in the auditing report of the annual financialstatementsas prescribed and thebudgeted volume assigned bythe Chairman of the Fundon an annual basis;

dd)Compliance status is determined in relation to legalregimes and policies: Based on the observance and implementation of the State policies promulgated in the financial domain, including: accounting and accounting regime, audit; financial reporting regime for credit guarantee funds andexpenditureregimes;regimes forprocurement and asset management. The observance of theregulations and policies under lawis thecompliance as regulated, noviolation, omission, incomplete,untimely or undoneimplementation.

3. The criteria specified at Points a, b, c and d, Clause 2 of this Article shall not be adjusted throughout the implementation period of the plan when evaluating the Fund s operational efficiency. In case of adjusting the performance evaluation criteria of the Fund in Clauses 1 and 2 of this Article due to objective and force majeure causes (natural disasters, epidemics, fires, unexpected accidents,politicalrisks), the Chairman of the Fund considers and decides after obtaining the approval of the Chairman of the provincial People s Committee.

4. The chairman of thecreditguaranteefundsshall formulate targets on thesalesgrowth of credit guarantee, the debt ratio paid on behalf of the enterprise, the compulsory debt recovery rate and total income minus the total cost in the annual financial plan and other criteria (if any), report to the Chairman of the provincial People s Committee for consideration and approval before issuing the decision. Time to report to the Chairman of the provincial People s Committee these criteriaisbefore March 15 of the plan year to serve as a basis for evaluating the performance of the credit guarantee fund.

5. The performance evaluation criteria of credit guarantee funds specified at Points a, b and c, Clause 2 of this Article shall also apply to compulsory guarantees and debt acknowledgment from the time the Decree. 34/2018/ND-CP of the Government takes effect.

Article 15. Method of evaluating effectiveness and classification results of credit guarantee funds

1.Criteria1: Growth in credit guarantee sales

a) Credit guarantee fund is graded A when the growth rate ofactualguarantee turnover is at least equal to 90% of the assigned plan in the year;

b) Credit guarantee fundis gradedB when the growth rate ofactualguarantee revenueisfrom 75% to less than 90% of the assigned plan;

c) Credit guarantee fundis gradedC when the growth rate ofactualguarantee revenueisless than 75% of the assigned plan.

2.Criteria2: Percentage of debts paid on behalf of small and medium enterprises

a) Credit guarantee fund isgradedA when the ratioof debtpaid on behalf of small and medium enterprises on the total outstanding loan guaranteeisequal to or lower than the assigned plan;

b) Credit guarantee fund isgradedB when the ratioof debtpaid on behalf of small and medium enterprises on the total outstandingloan guaranteeisfrom over 100% to 110% of the assigned plan;

c) Credit guarantee fund isgradedC when theratio ofdebt paid on behalf of small and medium enterprises is over 110%ofthe assigned plan.

3.Criteria3:Compulsorydebt recovery rate

a) Credit guarantee fundis gradedA when the compulsory debt recovery rate is at least equal to 90% of the assigned plan in the year;

b) Credit guarantee fund isgradedB when the compulsory debt recovery rateisfrom 75% to less than 90% of the assigned plan;

c) Credit guarantee fund isgradedC when the compulsory debt recovery rate is below 75% of the assigned plan.

4.Criteria4: Total income minus total expenses

a) Credit guarantee fund isgradedA when total income minus total costincurred is equal toat least 90% of the assignedplanin the year;

b) Credit guarantee fund isgradedB when the total income minus the total costincurred is equal tofrom 75% to less than 90% of the assigned plan;

c) Credit guarantee fundis gradedC when total income minus totalcostincurredis under 75% of the assigned plan.

5. Criteria 5:Compliance status oflegal regimes and policies

a) Credit guarantee fundisgraded A if it is not notified or concluded by competent agencies about violations of mechanisms and policies specified in Item e, Clause 2, Article 14 of this Circular;

b) Credit guarantee fund shall begradedB when violatinginone of the following cases: Being reminded in writing by the Ministry of Finance or a competent state agency about the submission of reports on operation situation,financial reportsand other reportswhich does not complywith the regulations, not on time from the second time for each type of report;being subject to administrative penaltyby competent agencies in the form of fines, the amount of each time of beingfinedshall not exceed VND 50,000,000 (excluding payable amounts for remedying consequences)incurredin the fiscal yearofevaluation and classification of the Fund;

c) Credit guarantee fund shall begradedB when violatinginone of the following cases: Being reminded in writing by the Ministry of Finance or a competent state agency about the submission of reports on operation situation,financial reportsand other reportswhich does not complywith the regulations, not on time from thethirdtime for each type of report;being subject to administrative penaltyby competent agencies in the form of fines, the amount of each time of beingfined aboveVND 50,000,000 (excluding payable amounts for remedying consequences)incurredin the fiscal yearofevaluation and classification of the Fund;Managers of credit guarantee funds commit acts of law violation in the course of executing the Fund s tasks to the extent of being examined for penal liability.

6. The evaluation of the effectiveness and classification of credit guarantee funds shall be conducted on the basis of comparison between assigned plans, objectives and tasks with the results of implementation and results of supervision of credit guarantee activities. .

Article 16.- Summary of classification of credit guarantee funds

1. Credit guarantee funds shall begradedA when there is no grade-C index, of which at least 2 (two) criteria in the following criteria shall begradedA including:criteria1,criteria2,criteria3,criteria4 andcriteria5.

2. Credit guarantee fund is graded C when there are 2 (two) in 5 (five) or more criteriagradedC.

3. Credit guarantee fundis gradedB in cases where it is notgraded as A orC.

4. Annually, based on the criteria of performance evaluation stated in this Circular, thecreditguaranteefund shall report on the operationand classificationresultsand send it to the President of the provincial People s Committee for classificationofcredit guarantee funds.

Article 17.Classificationof managers of credit guarantee funds

1. Managers of credit guarantee funds well fulfill their tasks when:

a) To well implement the criteria for evaluating the performance of managers according to the Government s regulations on managementpositionsatState-ownedone-member limited liability companies, in accordance withrules and guidelines of the Ministry of Home Affairs;

b)To meet orexceed the targetsthattheChairmanof thecreditguarantee assignregardingthe plan on the growth of credit guarantee turnover and the compulsory debt recovery rate.To completeor exceed the approved financial plan before March 1 of the evaluation year;

c) Credit guarantee fund graded A according to the provisions of this Circular.

2. The credit guarantee fund manager fails to fulfill his/her tasks when:

a) Failing to well implement the evaluation criteria due to the operation results of the enterprise manager under the guidance of the Ministry of Home Affairs;

 

 

b) Completing less than 85% of targetassigned bythe President ofcreditguaranteefundregardingincreaseincredit guarantee sales growth and compulsory debt recovery rate. Completing less than 90% of the approved financial plan before March 1 of the evaluation year;

c) Credit guarantee fundgradedC according to the provisions of this Circular.

3. Credit guarantee fund managers fulfill their tasks: The remaining cases do not fall under the provisions of Clauses 1 and 2 of this Article.

 

ChapterV

REGIME FORACCOUNTING, FINANCIAL PLAN, INFORMATION, REPORTING AND AUDITING

Article 18.Accounting and statistics of credit guarantee funds

1. Credit guarantee funds shall strictly comply with the provisions of law on accounting and statistics regimes, fully record original vouchers, update accounting books and fully, promptly, faithfully, accurately and objectivelyreport theactivities of the Funds.

2. The fiscal year of a credit guarantee fund shall be calculated from January 1 to December 31 every year.

Article 19. Annual financial plan of credit guarantee funds

1. The Credit Guarantee Fund shall have to elaborate the annual financial plan and submit it to the Fund sChairmanfor decision after obtaining the provincial-level People s Committee s approval, including:

a) Capital source plan andcapitalusage; total income, total cost; plans for procurement of fixed assets according to Appendix 1, Appendix 2, Appendix 3, Appendix 4 and Appendix 5 attached to this Circular;

b) Ratio of debt paid on behalf of the enterprise, compulsory debt recovery rate.

2. Planning time:

a) Before November 1 every year, thecreditguaranteefund shall draw up the financial planof the yearand submit it to the Fund sChairmanfor consideration and comments;

b) Before December 31 every year, the Chairman of the Fund shall report to the provincial People s Committee on the financial plan for the plan year of thecreditguaranteefund;

c) Before March 30 of the plan year, the provincial-level People s Committee shall consider and approve the financial plan for the plan year of thecreditguaranteefund;

d) After 03 working days after the provincial-level People s Committee approves the financial plan for the plan year of thecreditguaranteefund, the Chairman of the Fund issues a decision approving the financial plan for the plan year of the Fundforimplement and send to the Chairman of the provincial People s Committee and related agencies as prescribed for management and supervision.

Article 20. Regime of informing, reporting, auditing and publicizing financial statements of credit guarantee funds

The regime of information, reporting, auditing and publicizing the financial guarantee fund s financial reports shall comply with the provisions of Article 44 and Article 45 of the Government s Decree No. 34/2018/ND-CP.

 

ChapterVI

RESPONSIBILITIES OFSTATEAGENCIES

Article 21. Responsibilities of the Ministry of Finance

1. Performing the responsibilities stipulated in Article 58 of Decree No. 34/2018/ND-CP of the Government.

2. Modify and supplement financial management mechanism and evaluate the performance of credit guarantee funds (when necessary).

Article 22. Responsibilities of credit guarantee funds

1. Credit guarantee funds shall have to strictly abide by the provisions of the Decree No. 34/2018/ND-CPof the Government, specific guidance in this Circular and other relevant legal documents.

2. Comply with the financial management regime as stipulated in this Circular and relevant legal documents.

3. Based on the provisions of this Circular and relevant regulations, the Fund shall issue professional regulations and financial management regulations to ensure the management and use ofstatecapital and assetswhich aremanaged by the Fundin asafe and effectiveway.

ChapterVII

ORGANIZATION OF IMPLEMENTATION

Article 23. Transitional provisions

For credit guarantee funds established, operating and implementing financial mechanism in accordance with Circular No. 147/2014/TT-BTC dated October 8, 2014 of the Ministry of Finance guiding some articles of the Prime Minister s Decision No. 58/2013/QD-TTg of October 15, 2013, promulgating theregulationson establishment, organization and operation of credit guarantee funds for smalland medium-sized enterprises,handle the balance of funds as of December 31, 2018 (reserve fund to supplement charter capital, financialprovisionalfund, professional development investment fund, reward fund and welfare fund) Is set up according to Circular No. 147/2014/TT-BTC as follows:

1. The balance of the reserve fund to supplement the charter capital and the professional development investment fund shall be transferred to the development investment fund prescribed in the Decree No. 34/2018/ND-CPof theGovernment and this Circular.

2. The balance of funds extracted after the distribution of financial results includes: financial reserve fund, reward fund and welfare fund transferred into the fund for the same purpose as stipulated in Article 43 of the Decree 34/2018/ND-CP of the Government and this Circular.

Article 24. Effect

1. This Circular takes effect from June 1, 2019 and applies from fiscal year 2019. This Circular replaces Circular No. 147/2014/TT-BTC dated October 8, 2014 guiding some articles of the Decision No. 58/2013/QD-TTg ofthePrime Minister datedOctober 15, 2013 promulgating theregulation on establishment, organization and operation of credit guarantee funds for smalland medium-sizedbusinesses.

2. In the course of implementation, if any difficulties or problems arise, concerned agencies and units are requested to report them to the Ministry of Finance for guidance according to law provisions./.

 

Recipients:
- Prime Ministers and Deputy Prime Ministers;
- Central Office and Party Committees;
- Office of the General Secretary;

- Congress office;

- Office of the President;
- Ministries,ministerialagencies andgovernmental bodies;
- People s Procuratorate of the Supreme;
-Supreme People s Court;
-State audit,
- Central agency of unions;
-Official announcements;
- Websiteof the Government; Ministry of Finance;
- People s Committee, Department of Finance of provinces and cities under central authority;
- Department of Document Inspection (Ministry of Justice);

- Units under the Ministry of Finance;
-Archive:Librarian, TCNH (5).

On behalf of MINISTER
DEPUTY MINISTER




Huynh Quang Hai

Appendix1

FINANCIAL PLAN FOR (YEAR)...

(Issued together with Circular No. 15/2019/TT-BTC dated March 18, 2019 of the Ministry of Finance)

I.Criteria

Unit:....... VND

No

Item

Year N-2 (Actual)

Year N-1 (Actual)

Year N (Plan)

Difference

I

Total income

 

 

 

 

1

Revenue from professional activities

 

 

 

 

2

Revenue from financial activities

 

 

 

 

3

Other income

 

 

 

 

II

Total cost

 

 

 

 

1

Business operation costs

 

 

 

 

2

Expenses for Fund staff

 

 

 

 

3

Expenditure for public administration activities

 

 

 

 

4

Other costs

 

 

 

 

III

Financial results before tax

 

 

 

 

IV

Obligations to the state budget (if any)

 

 

 

 

V

The difference is only after tax

 

 

 

 

VI

Business operation targets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

II.Notes

1. Evaluate the operational status of the implementation year.

2. Assess the financial situation of the implementation year (income, expenses,profit, losses).

3. Business operation plan for the plan year.

4. Financial plan of the plan year, including the following contents:

- Assumptions are used to develop financial plans, income plans, costs, revenue and expenditure differences (details of each type of income - costs according to Appendix 2); reasons forthe plan to increase and decreasefor each type of income and expenses.

- Plan of capital source and use of capital.

- Plan for investment and procurement of fixed assets (detailed in Appendix 3).

- Labor plan, salary, bonus.

 

PREPARER
(Full name and signature)

HEAD OF DEPARTMENT
(Full name and signature)

.... Date… Month… Year
GENERAL DIRECTOR
(Full name, signature and seal)

 

Appendix2

DETAILED PLANS FOR INCOME AND EXPENSES FOR YEAR….

(Issued together with Circular No. 15/2019/TT-BTC dated March 18, 2019 of the Ministry of Finance)

 

I.INCOME

Unit:....... VND

No

Item

Year N-2 (Actual)

Year N-1 (Actual)

Year N (Plan)

Difference

I

Revenue from professional activities

 

 

 

 

 

Details of each type of income

 

 

 

 

 

..........

 

 

 

 

II

Income from financial activities

 

 

 

 

 

..........

 

 

 

 

 

..........

 

 

 

 

III

Other income

 

 

 

 

 

..........

 

 

 

 

 

..........

 

 

 

 

 

 

 

 

 

 

Notes:Explanatory notesshouldclearly state the basis for determining income and analyzing reasons for increasing and decreasing each type of income in the plan year

II.EXPENSES

No

Item

Year N-2 (Actual)

Year N-1 (Actual)

Year N (Plan)

Difference

I

Business operation costs

 

 

 

 

 

Details of each type of Cost

 

 

 

 

 

..........

 

 

 

 

 

..........

 

 

 

 

II

Expenses for Fund’Sstaff

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

III

Expenditure for public administration activities

 

 

 

 

 

..........

 

 

 

 

IV

Other expense

 

 

 

 

 

..........

 

 

 

 

Notes:Explanatory notesshouldclearly state the basis for determiningexpensesand analyzing reasons for increasing and decreasing each type ofexpensesin the plan year

 

Appendix3

PLAN FOR PURCHASE OF FIXED ASSETS FOR YEAR …

(Issued together with Circular No. 15/2019/TT-BTC dated March 18, 2019 of the Ministry of Finance)

I.Plan for purchase of fixed assets

Unit:....... VND

No

Item

Unit

Volume

Unit price

Amount

Notes

 

Details

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

II.Notes

- About the current asset situation.

- Expected plan for procurement of fixed assets in the year (clearly stating the reason and necessity).

 

Appendix4

REPORT ON FINANCIAL INCOME FOR YEAR…

(Issued together with Circular No. 15/2019/TT-BTC dated March 18, 2019 of the Ministry of Finance)

Unit:....... VND

Account No.

Item

Amount

Notes

1

2

3

4

I

INCOME

 

 

 

Income from professional activities

 

 

 

Details of each income item

 

 

 

................

 

 

 

Financial income

 

 

 

................

 

 

 

Other income

 

 

 

................

 

 

II

EXPENSES

 

 

 

Expenses from professional activities

 

 

 

Details of each expense item

 

 

 

................

 

 

 

Expenses for setting up risk provisions

 

 

 

Provision for guarantee risk

 

 

 

Financial contingency expenses

 

 

 

Expenditures from financial activities

 

 

 

Expenses for Fund’s staff

 

 

 

................

 

 

 

Cost for management and public service

 

 

 

Expenses for assets

 

 

 

Other costs

 

 

 

................

 

 

III

DIFFERENCE BETWEEN INCOME AND EXPENSES(III = I - II)

 

 

 

PREPARER
(Full name and signature)

HEAD OF DEPARTMENT
(Full name and signature)

.... Date… Month… Year
GENERAL DIRECTOR
(Full name, signature and seal)

 

Appendix5

REPORTING THE DISTRIBUTION OF FINANCIAL RESULTS AND USE OF FUNDS IN THE YEAR ...

(Issued together with Circular No. 15/2019/TT-BTC dated March 18, 2019 of the Ministry of Finance)Unit:....... VND

No.

Income distribution

Opening balance

Additions

Ending balance

Notes

Increase

Decrease

 

 

1

2

3

4

5

6

7

1

Development Fund

 

 

 

 

 

2

Financial reserve fund

 

 

 

 

 

3

Manager bonus fund

 

 

 

 

 

4

Bonus fund

 

 

 

 

 

5

Welfare Fund

 

 

 

 

 

 

Total

 

 

 

 

 

 

PREPARER
(Full name and signature)

HEAD OF DEPARTMENT
(Full name and signature)

.... Date… Month… Year
GENERAL DIRECTOR
(Full name, signature and seal)

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